Tractor Supply Company (TSCO)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 251,491 | 397,071 | 202,502 | 878,030 | 1,341,760 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 2,319,190 | 2,177,080 | 2,376,210 | 2,064,840 | 1,743,800 |
| Quick ratio | 0.11 | 0.18 | 0.09 | 0.43 | 0.77 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($251,491K
+ $—K
+ $—K)
÷ $2,319,190K
= 0.11
The quick ratio of Tractor Supply Company has shown a declining trend over the past five years. As of December 31, 2020, the quick ratio was 0.77, indicating that the company had sufficient current assets to cover its current liabilities. However, by December 31, 2021, the quick ratio decreased to 0.43, suggesting a potential liquidity strain as the company's ability to meet short-term obligations diminished.
The trend continued to deteriorate in the following years, reaching 0.09 by December 31, 2022, which indicates a significant decrease in liquidity and raises concerns about the company's short-term financial health. However, there was a slight improvement by December 31, 2023, with the quick ratio increasing to 0.18, although it still remains at a relatively low level.
As of December 31, 2024, the quick ratio further declined to 0.11, signaling ongoing challenges in Tractor Supply Company's ability to meet its short-term obligations with its current assets. This downward trend in the quick ratio over the years could reflect potential liquidity risks and may require the company to address its short-term financial management strategies to improve its liquidity position.
Peer comparison
Dec 31, 2024